By Eric Stock

SPRINGFIELD – Families who haven’t been paid death benefits are encouraged to share their story with Illinois State Treasurer Mike Frerichs who is hosting a public hearing at Normal’s council chambers on Wednesday.

PODCAST: Listen to Scott’s interview with Frerichs on WJBC.

“There are thousands of small insurance companies out there who have sold policies over the years and we don’t know how much they are holding on to that should be paid to loved ones because they don’t want to open their books to our auditors,” Frerichs said.

Frerichs told WJBC’s Scott Laughlin his office is aware of at least $550 million in benefits that life insurance companies haven’t paid to beneficiaries in Illinois.

“We know there are hundreds of million dollars more out there,” Frerichs said.

He cited on example of a boy who had lost both parents and didn’t realize they had life insurance policies.

“Thankfully it was one of those companies that now voluntary opens their books to us, we discovered this money,” Frerichs said. “When I called him he said, ‘It would have been really nice to have that $175,000 when I was a 16-year-old orphan.’ ”

Frerichs said Chicago-based Kemper Insurance has sued the state to prevent his office from looking into their books. He added Kemper has filed federal documents showing these unpaid benefits are factored into the company’s profits.

Frerichs backs a measure awaiting Gov. Bruce Rauner’s desk that would require insurance companies to use the federal death master file.

Eric Stock can be reached at [email protected].